Texas Eastern Transmission Corp. (Tetco) and Williams Natural Gas Co. have signed a lease for 125 MMcfd of natural gas capacity on the Transok Inc. pipeline system.
Tetco and Williams will share equally the leased volume on Transok's 2,200 mile intrastate system that extends from a connection with the Williams system in northern Oklahoma to the Wilburton area in Southeast Oklahoma.
The lease carries a 15 year term with options to extend to 20 years and expand volumes to 400 MMcfd.
WHAT'S PLANNED
Under the two part lease agreement, Transok will construct some incremental facilities.
In the second phase of the agreement, Transok will lay a 57 mile intrastate line extension to connect Transok facilities with those of Williams near Perry, Okla. Transok also will add 9,100 hp of compression to its Wilburton facilities.
The agreement with Transok hinges on timely Federal Energy Regulatory Commission approval. The target date for transporting gas is 1992-93.
The agreement with Transok is a companion agreement to Tetco's recently acquired capacity lease on the Arkla Inc. pipeline system. These combined agreements will enable Tetco to tap gas supplies from the Anadarko and Hugoton basins in Oklahoma and the Green River basin and other supply areas in Wyoming.
Tetco pegs potential gas resources at more than 48 tcf in the Anadarko basin and 42 tcf in the Green River Basin.
Tetco's 250 MMcfd lease agreement with Arkla gives Tetco customers access to 83 MMcfd of gas, or one third of the lease capacity, on Arkla's gathering system in the Arkoma basin (OGJ, Sept. 23, p. 16).
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